Gold At Rs 1.5 Lakh In 2026: Kotak Forecasts Prices Entering New Orbit On Rate Cuts, Dollar Risks
"Gold is entering a 'higher-for-longer' regime, and may scale $5,000 over the next year," Kotak Securities said.
Gold prices may go up to $5,000 per ounce and enter a “higher-for-longerˮ regime due to economic factors such as the US Federal Reserve rate cuts, growing fiscal deficits in various economies, and mounting geopolitical concerns, according to Kotak Securities.
In India, the yellow metal's prices are expected to touch Rs 150,000 per 10 grams next year, it added.
"As labour-market softness and slowing nominal growth persist, the Federal Reserveʼs longer-term trajectory still tilts toward additional easing, even if inflation remains sticky near 3%. Combined with persistent fiscal deficits, slower global growth and rising geopolitical concerns, suggest gold is entering a 'higher-for-longer' regime, and may scale $5,000 over the next year," Kotak Securities said in its Market Outlook 2026 report.
Notably, a low interest rate environment—marked by Fed's tilt towards rate cuts and replicated by other central banks—augurs well for the prices, as it makes non-yielding assets like bullion more attractive.
Kotak Securities, in its report, also added that the US dollar is facing risks of value deterioration which in turn is spurring strategic buying of gold by investors and central banks to diversify away from the US currency.
The emerging markets are also following suit and buying gold due to this phenomenon, which is impacting the yellow metal's pricing projections for the year ahead.
The report noted that the fundamental factors influencing gold continue to remain strong with regards to 2026 and further.
"Together, these forces suggest that while short-term consolidation is natural after such a dramatic rally in 2025, the fundamental backdrop continues to favour gold heading into 2026 and beyond," the brokerage noted.
Goldʼs value rose more than 55% from the same levels last year and reached a record high of $4,380 in October, breaking the historic $4,000 an ounce barrier. The report further stated that the metal had made "fifty fresh all-time highs" during 2025.
Gold prices in India also saw a surge above the record of Rs 1,32,000 per 10 grams, seeing an increase over 60% year-to-date, which made it "outpace international gains due to depreciation in the Indian rupee".
